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Binance set to resume operations in India after $2 million penalty

By:
on Apr 18, 2024
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  • Binance has agreed to pay a $2 million penalty as part of its re-entry strategy.
  • Binance has maintained a dominant presence in the global cryptocurrency market.
  • Binance registered a trading volume of $22B in just 24 hours, accounting for 25% of the global market share.

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Binance, the world’s largest cryptocurrency exchange, is set to resume operations in India after being banned earlier this year, The Economic Times reported.

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According to sources familiar with the matter, Binance has agreed to pay a $2 million penalty as part of its re-entry strategy.

This move comes after the Indian government imposed a ban on the platform in January due to non-compliance with anti-money laundering regulations.

Binance compliance with Indian financial regulations

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Upon its return, Binance will register with the Financial Intelligence Unit (FIU) of India’s finance ministry, aligning itself with the necessary legal frameworks.

The cryptocurrency giant will need to adhere strictly to the Prevention of Money Laundering Act (PML) and the regulations governing Virtual Digital Assets (VDA) taxation.

This compliance is expected to forge a more robust relationship between Binance and Indian regulatory bodies, ensuring long-term operational stability.

Binance’s regulatory challenges

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The ban on Binance was part of a broader crackdown that affected several offshore cryptocurrency platforms operating in India.

These platforms faced restrictions due to their non-compliance with FIU and PMLA guidelines.

A source quoted in The Economic Times highlighted that it was “unfortunate” that it took Binance over two years to acknowledge that negotiations were off the table and that no global entity could expect special treatment in regulatory matters.

Binance’s global crypto market presence

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Despite the regulatory hurdles in India, Binance has maintained a dominant presence in the global cryptocurrency market.

According to recent data from CoinMarketCap, Binance registered a trading volume of $22 billion in just 24 hours, accounting for 25% of the global market share. This statistic underscores the exchange’s significant impact and influence in the cryptocurrency space.

The successful comeback of Binance could potentially lead to increased cryptocurrency adoption and investment in India, marking a new chapter in the country’s burgeoning digital asset landscape.

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